The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has rejected claims that the apex bank is heavily intervening in the foreign exchange market to support the naira, stating that its participation now accounts for only about 1.2% to 1.3% of total FX turnover.
He made this known on Wednesday in Abuja during a press briefing after the 305th meeting of the Monetary Policy Committee (MPC).
Responding to questions about alleged aggressive FX interventions amid concerns over external reserves, Cardoso said such claims were inaccurate.
He explained that Nigeria’s foreign exchange market has expanded significantly under recent reforms, with daily turnover rising from about $100 million previously to around $550 million, and at times peaking close to $1 billion.
According to him, the long-term objective is to consistently reach a $1 billion daily turnover as liquidity continues to improve.
Cardoso noted that the CBN’s reforms have reduced the need for frequent market intervention, as improved liquidity now allows the market to function more independently under a willing-buyer, willing-seller framework.
He emphasized that transparency, access to information, and market discipline have strengthened significantly in recent times.
The CBN governor also linked these improvements to key reforms such as the FX Code, the electronic trading platform, and the revised foreign exchange manual, which is expected to take effect from June 1.
He said the new FX manual would enhance transparency, improve consistency in FX transactions, and make it easier for exporters to repatriate foreign earnings through official channels.
Cardoso added that these measures are also designed to encourage more FX inflows into the formal system and strengthen overall market liquidity.
On concerns about Nigeria’s external reserves, he dismissed fears of instability, explaining that reserve levels naturally fluctuate due to government obligations and repayments.
He stated that while outflows occur for debt servicing and other commitments, inflows continue to support reserve stability.
According to him, Nigeria’s reserves have now recovered close to levels recorded before recent geopolitical tensions.
He maintained that exchange rate stability remains a key priority in the CBN’s broader strategy to control inflation and support economic stability.
The governor reaffirmed that the central bank will continue its current policy direction and strengthen coordination with fiscal authorities to reduce inflationary pressures.
